Aren’t existing customers the easiest source of incremental revenue?
Original Juan, makers of spicy hot barbecue sauce, has taken their list, uploaded a custom audience, and advertised their Black Friday specials into the newsfeed.
They drove 4 conversions for only $26.72, which is a cost per conversion of $6.68.
You’ll have to decide if this is an acceptable conversion cost for you, whether it’s to acquire a new customer that might spend a lot more over the course of their lifetime or the incremental revenue from an existing customer.
The CTR and conversion rates on showing messages to existing customers is clearly higher than those not aware of your brand, it’s apples and oranges, just like brand vs non-brand terms on Google.
4 conversions on 52 clicks is a 7.7% conversion rate. Of course, if you’re in B2B lead gen or selling products that are over $100, often a 1% conversion rate can still be great.
The secret to custom audiences is to build up your list over time and mention the special only when the timing is right, when it’s your special sale or event. It takes patience to know when to sow versus reap.